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SHARE-BASED COMPENSATION (Tables) | 3 Months Ended
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Mar. 31, 2023
Share-Based Payment Arrangement [Abstract] |
Summary of RSU Activity | A summary of RSUs activity under all stock plans for the three months ended March 31, 2023, is presented as follows (in millions, except per share amounts):
| Shares |  | Weighted-Average Grant-Date Fair Value
Unvested balance as of December 31, 2022 | 4.6 |  |  | $ | 241.47 |
RSUs granted | 2.2 |  |  | $ | 230.07 |
RSUs vested | (1.5) |  |  | $ | 223.07 |
RSUs forfeited | — |  |  | $ | 250.75 |
Unvested balance as of March 31, 2023 | 5.3 |  |  | $ | 241.84 |
Summary of Stock Option Activity Under All Stock Plans | A summary of stock option activity under all stock plans for the three months ended March 31, 2023, is presented as follows (in millions, except per share amounts):
|  | Stock Options Outstanding
|  | Number Outstanding |  | Weighted-Average Exercise Price Per Share
Balance as of December 31, 2022 |  | 10.8 |  |  | $ | 144.86 |
Options granted |  | 0.7 |  |  | $ | 229.86 |
Options exercised |  | (0.6) |  |  | $ | 73.91 |
Options forfeited/expired |  | — |  |  | $ | 264.19 |
Balance as of March 31, 2023 |  | 10.9 |  |  | $ | 153.45 |
Share-Based Payment Arrangement, Performance Shares, Activity | PSU activity for the three months ended March 31, 2023, was as follows (in millions, except per share amounts):
|  | Shares |  | Weighted-Average Grant Date Fair Value Per Share
Unvested balance as of December 31, 2022 |  | 0.1 |  |  | $ | 299.32 |
Granted |  | 0.1 |  |  | $ | 235.84 |
Vested |  | — |  |  | $ | — |
Performance change |  | — |  |  | $ | — |
Forfeited |  | — |  |  | $ | — |
Unvested balance as of March 31, 2023 |  | 0.2 |  |  | $ | 256.44 |
Summary of Share-Based Compensation Expense | The following table summarizes share-based compensation expense for the three months ended March 31, 2023, and 2022 (in millions):
| Three Months Ended March 31, |  |
| 2023 |  | 2022 |  |  |  |
Cost of sales – products (before capitalization) | $ | 23.0 |  |  | $ | 18.7 |  |  |  |  |
Amounts capitalized into inventory (1) | (18.8) |  |  | — |  |  |  |  |
Amounts recognized in income for amounts previously capitalized in inventory | 12.6 |  |  | — |  |  |  |  |
Cost of sales – products | $ | 16.8 |  |  | $ | 18.7 |  |  |  |  |
Cost of sales – services | 7.0 |  |  | 5.6 |  |  |  |  |
Total cost of sales | 23.8 |  |  | 24.3 |  |  |  |  |
Selling, general, and administrative | 66.7 |  |  | 60.3 |  |  |  |  |
Research and development | 50.1 |  |  | 36.8 |  |  |  |  |
Share-based compensation expense before income taxes | 140.6 |  |  | 121.4 |  |  |  |  |
Income tax benefit | 28.0 |  |  | 27.2 |  |  |  |  |
Share-based compensation expense after income taxes | $ | 112.6 |  |  | $ | 94.2 |  |  |  |  |
(1) Share-based compensation expense subject to capitalization into inventory was not material during the quarter ended March 31, 2022, and, therefore, not recorded. The Company commenced capitalization of share-based compensation expense into inventory during the quarter ended December 31, 2022, on a prospective basis. |  |  |  |
Schedule of Estimated Fair Value of the Option Using Black-Scholes Option Pricing Model, Weighted Average Assumptions | The weighted-average estimated fair values of stock options and the rights to acquire stock under the ESPP, as well as the weighted-average assumptions used in calculating the fair values of stock options and the rights to acquire stock under the ESPP that were granted during the three months ended March 31, 2023, and 2022, were as follows:
| Three Months Ended March 31, |  |
| 2023 |  | 2022 |  |  |  |
Stock Options |  |  |  |  |  |  |
Risk-free interest rate | 4.8% |  | 1.6% |  |  |  |
Expected term (in years) | 3.4 |  | 3.5 |  |  |  |
Expected volatility | 34% |  | 35% |  |  |  |
Fair value at grant date | $72.13 |  | $80.80 |  |  |  |
ESPP |  |  |  |  |  |  |
Risk-free interest rate | 4.7% |  | 0.8% |  |  |  |
Expected term (in years) | 1.2 |  | 1.2 |  |  |  |
Expected volatility | 35% |  | 37% |  |  |  |
Fair value at grant date | $79.33 |  | $88.85 |  |  |  |

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- Definition Tabular disclosure of the number and weighted-average grant date fair value for restricted stock units that were outstanding at the beginning and end of the year, and the number of restricted stock units that were granted, vested, or forfeited during the year. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c)(1) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 + Details
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- Definition Tabular disclosure for stock option plans. Includes, but is not limited to, outstanding awards at beginning and end of year, grants, exercises, forfeitures, and weighted-average grant date fair value. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c)(1) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 + Details
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- Definition Tabular disclosure of number and weighted-average grant date fair value for nonvested performance shares. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 + Details
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